Employment Class Action Lawsuits
Employment class action lawsuits allow workers to hold employers accountable for unlawful employment practices. In these lawsuits, one or more workers whose rights were violated sue their employer for discrimination, unpaid wages, and other harms, seeking compensation for lost wages, lost economic opportunities, and more.
- September 8, 2026
Wage theft is a common issue resolved by class action lawsuits. This practice steals billions of dollars from countless workers each year. According to a 2021 report from the Economic Policy Institute, more than $3 billion in stolen wages was recovered between 2017 and 2020 by the government and through class action litigation.
Common Reasons Employees File Class Action Lawsuits
Some of the most common workplace violations that can lead to employment class action litigation include wage and hour violations, employee misclassification, discrimination, harassment, retaliation, and unfair employment practices.
Wage and Hour Violations
Wage and hour violations may include unpaid overtime, minimum wage violations, off-the-clock work, improper wage deductions, and failure to provide legally required breaks. The federal Fair Labor Standards Act establishes minimum wage, overtime pay, recordkeeping, and child labor requirements for covered employers and employees. Employers that violate applicable federal or state wage laws may be required to pay back wages, damages, penalties, or other available relief.
Employee Misclassification
Employee misclassification occurs when an employer improperly classifies their employees as independent contractors to avoid payroll taxes, minimum wage, overtime, and meal and rest breaks. It also means those workers don’t have access to benefits like paid sick days, workers’ compensation, and insurance coverage. This is a form of fraud, and it is illegal under federal law.
Workplace Discrimination and Harassment Claims
Widespread discriminatory practices or unlawful harassment affecting employees in similar ways may support a class action if the requirements for class certification are met. Under federal laws enforced by the U.S. Equal Employment Opportunity Commission, covered employers may not discriminate against an applicant or employee based on race, color, religion, sex, national origin, age if the person is 40 or older, disability, or genetic information. Employers also may not retaliate against applicants or employees for reporting or opposing suspected discrimination, filing a discrimination charge, or participating in an employment discrimination investigation, proceeding, or lawsuit.
Unfair Employment Practices
The U.S. Department of Labor’s Wage and Hour Division enforces regulations prohibiting retaliation, harassment, intimidation, and adverse actions against employees who assert their worker rights, file a complaint about worker rights, or cooperate with WHD investigations. One common unfair employment practice is retaliation, which occurs when an employer fires or takes adverse action against an employee for engaging in protected activity.
How Does an Employment Class Action Lawsuit Work?
Generally, the class action lawsuit process involves hiring a lawyer, working with them to file a lawsuit, obtaining class certification, conducting discovery, and either settling the lawsuit or going to trial. Many employment class actions settle, as companies often seek to preserve their reputation by avoiding a public trial.
Who May Qualify for an Employment Class Action Lawsuit?
You may qualify to start or join an employment class action lawsuit if your employer failed to pay the legally required minimum wage, agreed-upon wages, pressured workers to work without pay, misclassified employees as independent contractors, and more. You could also be eligible if your employer discriminated against you for having a disability or retaliated against you for reporting that discrimination.
How Much Money Can Employees Receive From a Class Action Lawsuit?
In an employment class action lawsuit, affected workers may be able to recover compensation for lost wages due to wage & hour violations, lost income potential, or emotional distress due to discrimination, statutory penalties, and more. Compensation varies depending on the case, damages, settlement terms, and individual circumstances, and your payout may be taxable.
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Examples of Employment Class Action Lawsuits and Settlements
Papa Johns Franchise Wage and Hour Lawsuit
A major Papa Johns franchise operator in Iowa is facing a proposed collective action under the Fair Labor Standards Act. The lawsuit alleges that PJIOWA underpaid pizza delivery drivers by failing to adequately reimburse them for using their personal vehicles. According to court records, the franchisee operates at least 26 restaurants across Iowa, Illinois, and South Dakota.
The complaint alleges that the named plaintiff received approximately 35 cents per mile even though her actual vehicle expenses were substantially higher. She claims the unreimbursed costs effectively reduced her pay below the federal minimum wage of $7.25 an hour. The court has not determined whether PJIOWA violated the law or whether the case may proceed on behalf of similarly situated drivers.
Big Al’s Restrictive Workplace Policy Settlement
Current and former Big Al’s Inc. employees in Washington who earned less than twice the applicable state minimum wage from Jan. 1, 2020, through May 22, 2026, may be eligible for an automatic payment from a proposed $450,000 class action settlement, subject to final court approval.
The lawsuit alleged that Big Al’s maintained policies that improperly restricted lower-wage employees from taking second jobs or pursuing other employment outside their regular working hours. Big Al’s denied violating Washington law, and the settlement does not constitute an admission of wrongdoing.
AT&T Proposed Pension Settlement
In July 2026, AT&T agreed to a proposed class action settlement valued at $184.1 million that would affect an estimated 300,000 current and former employees. The 2020 lawsuit alleged that AT&T violated the Employee Retirement Income Security Act by using outdated mortality data and other actuarial assumptions to calculate certain joint-and-survivor annuities for married pension plan participants. The plaintiffs claimed that this method improperly reduced monthly benefits to an amount below the actuarially equivalent amount required by federal law. AT&T denied wrongdoing, and the settlement remains subject to court approval.
What Should You Do if You Believe You Have an Employment Class Action Claim?
If you believe you have been affected by unlawful workplace practices like wage and hour violations, discrimination, or retaliation, you may have an employment class action claim. The most important step to take is to consult with an experienced class action lawyer, who can evaluate your situation and see if you have a claim. Then, your attorney will work with you to gather evidence, file a claim, and proceed with the class action in court.
Employment Class Action Resources
Workers have guaranteed rights under federal and state laws that protect them from wage theft, discrimination, harassment, and retaliation. When employers violate these laws, they can be held accountable via employment class action lawsuits. If you or a loved one was subject to unfair employment practices, check our news feed to see if you may qualify to join an existing class action lawsuit.
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